May 17 (Reuters) - Moody's :
* Australian bank performance steady, but latent risks rising in household sector
* Increasing household leverage and low wage growth, are increasing Australia's major banks' sensitivity to external shocks
* On Australian banks, expects profit growth to moderate, as well as the potential for rising credit costs and slower credit growth
* Australian budget in may includes number of initiatives that, if implemented, will place incremental pressure on banks' profit growth
* Major Australian banks well positioned to meet net stable funding ratio set by australian prudential regulation authority coming into effect on Jan 1 Source text :